Media – Blog
September 23, 2019
This past week saw some nearly unprecedented chaos in repo markets. Beginning late Monday and extending into Tuesday morning, funding in overnight cash markets essentially dried up, sending investors scrambling for liquidity. This resulted in a surge in repo rates for those who did transact, with overnight rates jumping from
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September 17, 2019
For early-stage companies seeking debt financing, the most obvious questions are often the most difficult to answer. When is the most appropriate time to pursue debt financing? Why should you consider debt at all? And how much should you borrow? At Capital Advisors Group, we've advised hundreds of companies on
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September 10, 2019
As a registered investment advisor whose sole focus is on cash investments, Capital Advisors Group has a very clear mission: to make sure the strategies we develop for our clients comply with their investment policies, risk tolerance, and current business situation. Under the Investment Advisers Act of 1940 which governs
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August 22, 2019
When a multi-billion-dollar rate-fixing scandal in 2012 undermined confidence in LIBOR as the standard global benchmark for interest rates on short-term debt, regulators from the U.S. and U.K. started searching for a suitable replacement. A lot was riding on the choice: more than $200 trillion in floating-rate bonds, derivatives contracts,
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July 17, 2019
The fallout from the ongoing U.S. and China trade war continues to impact both countries and may be contributing to global weakness. Chinese economic growth fell to 6.2% in the second quarter, the lowest level since record-keeping began in March of 1992, as the value of the country’s exports to
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July 12, 2019
Amid expectations that the Fed will soon complete its about-face from hawk to dove with its first rate cut since 2008, cash investors are looking as hard as ever for relatively safe short-term investments capable of delivering decent returns. And many are turning to a market that in the past
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July 3, 2019
Introduction The President of the ECB, Mario Draghi, recently performed an about-face on the direction of interest rates. After having previously announced plans to begin raising interest rates out of the negative range, Draghi altered course significantly, stating that rates will likely remain negative until at least 2021. Negative rates,
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July 2, 2019
Chinese President Xi Jinping and U.S. President Donald Trump agreed to resume trade negotiations ahead of the G20 summit last weekend, with the U.S. granting a reprieve on certain Huawei restrictions and on further tariff increases. China agreed to buy additional American agricultural goods in exchange. Stock markets surged on
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May 16, 2019
Trade Dispute Escalation The apparent lack of progress in U.S.-China trade negotiations stoked volatility in the financial markets in early May. On Friday, President Trump imposed 25% tariffs on $200 billion of Chinese goods with China responding in kind on $60 billion of U.S. goods. And just this morning, Trump
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May 9, 2019
Brexit has been delayed until Halloween, a fitting deadline for what has turned into a three-year nightmare for the British populace. UK Prime Minister Theresa May had pushed for a shorter extension, out until the end of June, in hopes that the UK would not have to participate in the
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